Kohl’s Corp.
KSS,
-11.02%
reported first quarter net income of $14 million, or 11 cents per share, after reporting $14 million, or 9 cents per share, last year. Sales of $3.471 billion were down from $3.662 billion. The FactSet consensus was for EPS of 69 cents and sales of $3.684 billion. “Following a strong start to the quarter with positive low-single digits comps through late March, sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment,” said Chief Executive Michelle Gass in a statement. “We continue to expect our business to improve as the year progresses, with growth in the second half as we benefit from the roll out of 400 additional Sephora stores, enhanced loyalty rewards and further investment in our stores.” Gass says the company continues to review strategic alternatives, with additional “actionable bids” coming due within weeks. Kohl’s is working with Goldman Sachs, which Kohl’s says has engaged with more than 25 parties. Kohl’s has rejected previous buyout offers. Kohl’s is guiding for full-year sales to be flat to up 1% and EPS n the range of $6.45 to $6.85, excluding non-recurring charges. The FactSet consensus is for sales of $18.911 billion, implying 2.4% growth, and EPS of $7.09. On Wednesday, the department store retailer announced the departure of two executives. And last week, shareholders rejected an activist proposal and re-elected the company’s board. Kohl’s stock slipped 3.3% in Thursday premarket trading, and is down 12.7% for the year to date.
